Frequent Flier Miles and Bankruptcy

[SW FL Dem]

Does anyone know what happens to your FF miles if the airline files for bankruptcy. I have a lot of accumulated miles on Delta and wonder if I should use them before I lose them. TIA

[joeybee12]

1. You're ok for a while--as long as they're IN bankruptcy they're still

in business and everything is pretty much the same. I have a lot on Delta also, but should probably think about using them up in the next six months or so. The problem will be if when they're in bankruptcy, they won't come out of it in tact. Delta is probably ok, but US Airways may be in big trouble--this is their second bankruptcy!

[CanuckAmok]

2. I know this has happened before.

By law, the points would become valueless, but you might find that some airlines will allow you to use your points, or some of them, to attract your business. You should call some of them and ask "will you honour my Delta points?", and the savvy ones will say "yes, of course we will!"

[arwalden]

3. If You Can't Travel... You May Be Able To Redeem Them For Other Things

I had some frequent flier miles on USAir from ONE business trip that I took (and was unable to fly American Airlines). I was able to redeem those miles for magazine subscriptions rather than lose them or just let them sit around collecting dust.

Also, you may want to see if your airline has any reciprocal agreements with any hotels for points/miles exchange. For example American Airlines has an agreement with Hilton to exchange Hilton Honors points for frequent flier miles (and vice versa, I believe).

Good luck.

-- Allen